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MoviePass launches new pricing plan built for the mass consumer (Photo: Business Wire)

August 06, 2018 09:15 AM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--MoviePass™, the nation’s premier movie theater subscription service and
a majority-owned subsidiary of Helios and Matheson Analytics Inc.
(Nasdaq:HMNY) (“Helios”), announces its new subscription plan and
business model effective August 15, 2018. MoviePass’ new subscription
plan retains its industry-low monthly subscription rate of $9.95 and at
the same time creates a long-term and sustainable business model. The
new plan will include many major studio first-run films. For our
subscribers who have migrated to the new subscription plan, we are
suspending Peak Pricing and Ticket Verification. MoviePass continues to
be the most widely enjoyed theatrical subscription service in the United
States, available at 91% of the theaters.

We have heard – and we have listened to – our MoviePass Community and we
will not be raising prices to $14.95 a month. The new plan is
focused on usage by the bulk of our subscribers who have historically
used MoviePass to attend three movies or fewer a month. Additionally,
the new plan addresses past misuses which imposed undue costs on the
system, including ticket scalping, unauthorized card usage and other
activities, which in the past necessitated the use of certain remedial
measures that have sometimes been inconvenient for our subscribers.

Beginning August 15, 2018, MoviePass subscribers will transition to the
new plan upon their renewal, which gives subscribers up to three movies
a month for $9.95, and up to a $5.00 discount for any additional movie
tickets. Because only 15 percent of MoviePass members see four or more
movies a month, we expect that the new subscription model will have no
impact whatsoever on over 85 percent of our subscribers.

“We are well aware that during our journey to innovate moviegoing — a
form of entertainment that over time has become unaffordable and broken
— we’ve encountered many challenges. However, any industry-wide
disruption like MoviePass requires a tremendous amount of testing,
pivoting, and learning,“ said Mitch Lowe CEO of MoviePass. “We
discovered over several months of research that our customers value a
low monthly price above nearly everything else, so we came together to
create a plan that delivers what most of our loyal MoviePass fans want,
and one that, we believe, will also help to stabilize our business
model. While most of our loyal subscribers shared the passion for this
new accessible movie experience and experimented fairly, the fact is
that a small number have used our business model to a point where it was
compromising the business’ long-term stability. As is true with any new
company, we’ve evolved to accommodate what has become an unprecedented
phenomenon. We are now creating a framework to provide the vast majority
of subscribers with what they want most – low cost, value, variety, and
broad availability – and to bring some moderation to the small number of
subscribers who imposed undue cost on the system by viewing a
disproportionately large number of movies. We believe this new plan is a
way for us to move forward with stability and continue to revitalize an
entrenched industry and return moviegoing to everyone’s financial reach.”

Monthly subscribers will be given the opportunity to subscribe to the
new plan when their current plan comes up for renewal beginning August
15, 2018. Annual subscribers will not be affected by this plan until
their renewal dates. Any subscriber can still cancel anytime.

“All along, we’ve known that we need to invest heavily to prove our
business model and bring enough subscribers into the business to truly
understand their usage patterns and allow us to leverage ancillary
revenue opportunities,” said Ted Farnsworth, Chairman and CEO of HMNY.
“However, one year and 3 million plus members later, it has become clear
that a small number — only 15 percent — of the subscriber base has been
stressing the system. We believe this new business model will
immediately reduce our burn so we can refocus our efforts where they
belong: making a permanent and positive change in this industry by
creating an amazing theater-going experience and building a company that
continues to benefit our nationwide community.”

About Helios and Matheson Analytics

Helios and Matheson Analytics Inc. (Nasdaq:HMNY)
(“Helios”) is a provider of information technology services and
solutions, offering a range of technology platforms focusing on big
data, artificial intelligence, business intelligence, social listening,
and consumer-centric technology. Helios currently owns approximately 92%
of the outstanding shares (excluding options and warrants) of MoviePass
Inc., the nation's premier movie-theater subscription service. Helios'
holdings include RedZone Map™, a safety and navigation app for iOS and
Android users, and a community-based ecosystem that features a socially
empowered safety map app that enhances mobile GPS navigation using
advanced proprietary technology. Helios is headquartered in New York, NY
and listed on the Nasdaq Capital Market under the symbol HMNY. For more
information, visit us at www.hmny.com.

About MoviePass Inc.

MoviePass Inc. (“MoviePass”) is a marketing technology platform
enhancing the exploration of film and the moviegoing experience. As the
nation's premier movie-theater subscription service, MoviePass provides
film enthusiasts the ability to attend select new movies in theaters.
The service, now accepted at more than 91% of theaters across the United
States, is the nation's largest theater network. Visit us at moviepass.com.

Cautionary Statement on Forward-looking Information

Certain statements in this communication contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 or under Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (collectively, “forward-looking statements”) that may not be
based on historical fact, but instead relate to future events, including
without limitation statements containing the words “believe”, “may”,
“plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”
and similar expressions. All statements other than statements of
historical fact included in this communication are forward-looking
statements.

Such forward-looking statements are based on a number of assumptions.
Although Helios’ management believes that the assumptions made and
expectations represented by such statements are reasonable, there can be
no assurance that a forward-looking statement contained herein will
prove to be accurate. Actual results and developments (including,
without limitation, whether the new subscription plan will stabilize the
MoviePass business model and lower the burn and the impact of the new
model on MoviePass members) may differ significantly from those
expressed or implied by the forward-looking statements contained herein
and even if such actual results and developments are realized or
substantially realized, there can be no assurance that they will have
the expected consequences or effects. Some, but not all, of these risks
include, among other things: our capital requirements and whether or not
we will be able to raise capital as needed; whether our new subscription
plan and business model will be successful; our ability to successfully
develop the business model of MoviePass; our ability to retain our
existing subscribers and market and sell our services to new subscribers
following the change in the subscription plan and business model; our
ability to integrate the operations of MoviePass and other acquired
businesses into our operation; and the risk factors described in Helios’
Annual Report on Form 10-K for the fiscal year ended December 31, 2017,
its quarterly report on Form 10-Q for the quarter ended March 31, 2018
and other filings, including subsequent current and periodic reports,
information statements and registration statements filed with the U.S.
Securities and Exchange Commission. You are cautioned to review such
reports and other filings at www.sec.gov

Given these risks, uncertainties and factors, you are cautioned not to
place undue reliance on such forward-looking statements and information,
which are qualified in their entirety by this cautionary statement. All
forward-looking statements and information made herein are based on
Helios’ current expectations and Helios does not undertake an obligation
to revise or update such forward-looking statements and information to
reflect subsequent events or circumstances, except as required by law.